John Thain Denies Report/Rumor: CIT Is Absolutely Not For Sale!
CIT Group Inc. (NYSE: CIT) has been the subject of potential buyout rumors of late. Around 4:15 PM EST today CEO John Thain was a guest on CNBC. It was just back on Monday that we saw shares run from $39 to $41 on word that Mr. Thain was shopping CIT Group for a buyer.
Here is the crux of what matters from the CNBC appearance by John Thain:
- CNBC's Mario Bartoromo asked John Thain if the company was for sale. His answer: "Absolutely not! It is very disappointing that they would air a piece that they did not fact check that is not true."
- Maria Bartoromo also asked about whether or not the company could remain independent ahead. Thain said the company can absolutely be a standalone business ahead.
The middle-market lending is a market where CIT has replaced many traditional bank lenders. That was the case before, during, and after the great recession. Wells Fargo & Co. (NYSE: WFC) has been named on potential suitor according to reports. It is important to realize that it has been John Thain who has overseen this company through its exit from bankruptcy after the recession.
Fox Business Network reported today that Thain may actually have a hard time unloading CIT Group. Our own question is whether or not regulators would allow any "too big to fail" bank from acquiring a company like CIT as regulators are obviously skeptical of any big bank even they are safe to go out and grow to where the public and the economy is that much more dependent upon them.
CIT has been said to have bought growth, but it has also been handily trimming its cost of borrowing as its borrowing costs have come way down since it started refinancing debt and issuing bonds and notes while interest rates are so low.
With shares trading up around $40.00, the market cap is about $8.06 billion and the 52-week trading range has been $27.68 to $43.35.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Banking & Finance, Mergers & Acquisitions, Rumors Tagged: CIT, featured, WFC